ADA Price Prediction: Stablecoin News to Bring $0.340 into View
- On Friday, cardano (ADA) rose by 0.31%, marking the fourth gain from eleven sessions.
- A quiet Friday session left investors to consider the latest from the Cardano network.
- The technical indicators remained bearish, with ADA sitting below the 50-day EMA, leaving $0.300 in view.
On Friday, ADA rose by 0.31%. Partially reversing a 2.11% loss from Thursday, ADA ended the day at $0.326. Notably, ADA fell short of $0.340 for the second time since the collapse of FTX.
Tracking the broader crypto market, ADA rose to a morning high of $0.332. Coming up short of the First Major Resistance Level (R1) at $0.340, ADA slid to a late afternoon low of $0.320. However, steering clear of the First Major Support Level (S1) at $0.305, ADA found late support to end the session at $0.326.
Stablecoin News Deliver Support
On Friday, news hit the wires of Cardano planning to launch a US Dollar-backed stablecoin.
EMURGO, the commercial arm of Cardano, announced the planned launch on Twitter, saying,
“EMRUGO, the official commercial arm and a founding entity of the Cardano blockchain, announces the planned launch of its new US Dollar-backed stablecoin, USDA. A first fully fiat-backed, regulatory-compliant stablecoin in the Cardano ecosystem.”
EMURGO went on to say,
“EMURGO has partnered with a regulated financial services company based in the United States to custody cash deposits, assuring the stablecoin is fully compliant and adheres to regulatory guidelines.”
In a series of tweets, EMURGO added,
“Backed by ‘real-world’ assets, USDA provides strong, long-term price stability that may eventually lead to unlocking more reliable financial services to the Cardano ecosystem.”
Stablecoins have been in the crosshairs since the collapse of Terra Lab, leaving the door open for new stablecoin initiatives.
ADA Price Action
This morning, ADA was up 0.31% to $0.325. A mixed morning saw ADA fall to an early low of $0.322 before steadying.
ADA needs to move through the $0.326 pivot to target the First Major Resistance Level (R1) at $0.332 and the Friday high of $0.332. A return to $0.335 would support a bullish session. However, ADA would also need the support of the broader crypto market to break out from R1.
In case of an extended rally, the Second Major Resistance Level (R2) at $0.338 and $0.40 would come into play. The Third Major Resistance Level (R3) sits at $0.350.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.320 in play. However, barring a contagion-fueled sell-off, ADA should avoid sub-$0.315 and Second Major Support Level (S2) at $0.314.
The Third Major Support Level (S3) sits at $0.302.
This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
ADA sat below the 50-day, currently at $0.338. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA, delivering bearish signals.
A move through R1 ($0.332) would give the bulls a run at the 50-day EMA ($0.338) and R2 ($0.338). However, failure to move through the 50-day EMA would leave ADA under pressure and sub-$0.300 in view.